A fierce price war is shaking up India’s beverage industry as Reliance Consumer Products’ aggressive ₹10 pricing for Campa Cola and its new energy drinks disrupt the market. Established players like Dabur, ITC, and Coca-Cola are now rolling out competitive offers and price cuts ahead of the crucial summer season.
Industry insiders suggest that with out-of-home consumption accounting for nearly 40% of beverage sales, competitive pricing has become essential. “The beverage was fantastic, but suddenly there is a cola war happening, and Reliance has disrupted it,” said Dabur CEO Mohit Malhotra. The company plans to reduce the price of its Real juice nectar from ₹130 to ₹100 per liter and introduce a more affordable range while increasing margins for distributors.
Coca-Cola bottlers in Kolkata have slashed the price of 250-ml Coke PET bottles from ₹20 to ₹15 as part of a promotional campaign. ITC, which markets juices under the B Natural brand, is also preparing aggressive consumer offers.
Reliance’s ₹10 pricing for Campa Cola has significantly impacted out-of-home consumption. The company has set a sales target of ₹1,000 crore from Campa in FY 2024-25, claiming that the brand has already secured over 10% market share in sparkling beverages in some states.
Additionally, Reliance has launched Spinner, a sports drink, and RasKik Gluco Energy, an energy and rehydration beverage, both priced at ₹10.
While Coca-Cola and PepsiCo have had pricing battles in the past, this is the first time juice brands are also joining the competition. Analysts warn that extremely low price points may not be sustainable long term due to profitability concerns. “Both Coca-Cola and Pepsi abandoned ₹5 pricing two decades ago because it wasn’t viable,” an industry expert told ET.
PepsiCo Chairman Ramon Laguarta recently emphasized the importance of strategic pricing, particularly in developing markets like India. Meanwhile, Tata Consumer Products has increased retail margins on its glucose drink, Tata Gluco+, to maintain competitiveness.
With Reliance rapidly expanding production capacities and PepsiCo’s largest bottler, Varun Beverages, increasing capacity by 20-25%, the competition is set to intensify. Varun Beverages Chairman Ravi Jaipuria confirmed that his company is urging PepsiCo to launch more promotions while focusing on expanding retail reach by 10-12% annually.
The summer months are crucial for beverage brands, contributing 60-65% of annual sales. While cola and juice brands are locked in a price war, premium categories like bottled water, tender coconut water, and 100% juices remain unaffected due to their premium positioning.
With more players entering the market, analysts believe the industry is heading toward a broader market expansion rather than just a pricing battle. However, whether Reliance’s disruptive pricing is sustainable in the long run remains to be seen.